IT Supplier News, Insight, and Market Intelligence.
In this issue:
Top 8 Reasons Cloud Cost Optimization Will Improve Over Time
2023 Forecast: A Little Less Cloudy
Top 5 Ways to Save on ServiceNow - This Year
Top 5 Ways to Save on Microsoft - This Year
Top 5 Ways to Save on Cisco NET(net) Series on Optimizing Mainframe Series - Part 4
Cisco Case Study
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Despite a pervasive industry need, cloud cost optimization has not yet lived up to its potential. Clients are continuing to suffer from cloud cost overruns and efforts to cut costs have been largely ineffective. So then, what is the future for cost optimization with cloud solutions like AWS, Azure, and GCP?
A big story in the first quarter of 2023, is that the era of hyper-accelerated cloud migrations, which has been causing unassailable growth for the major cloud computing providers, may be slowing.
Last quarter, Amazon (AWS) posted 'the slowest growth in its history' at 27.5%, down from 33% the quarter before.
Cloud Growth at Azure, and GCP is slowing too as customers get a dose of cloud 'cost reality' or what we like to call, Price-Shock.
As it turns out, cloud deployments are not always cheaper than implementations on-premises, and many client organizations are determining that previous cloud-migrated workloads may not deliver the benefits they originally sought -- especially for those workloads that are data-intensive rather than compute-intensive.
With customers such as Alphabet, Amazon, Apple, Costco, CVS, McKesson, and Walmart, it is clear that ServiceNow has gained significant market acceptance due in part to its comprehensive functionality, scalability, flexibility, and focus on continuous innovation – and from serving a wide range of industries, including finance, healthcare, technology, government, and more.
The company does have a good reputation for its focus on delivering value, customer success, and driving digital transformation, but it is also widely recognized as having an extremely assertive sales force committed to promoting and expanding the adoption of their products and services, and this reputation has only increased since Bill McDermott’s arrival as CEO in November of 2019 after leaving SAP as its CEO in October of 2019.
In late June in the northern hemisphere, we experience the longest days of the year, with the most daylight. Isn't it ironic then that Microsoft's fiscal year-end is also in June, as it seems they would prefer to keep customers in the dark about how they can reduce costs on Microsoft with no diminution of business value.
Microsoft's most active month of the year for doing deals and renewals is June, and as a result, it is also the best time of the year to claim disproportionate value in your Microsoft agreements, investments, deployments, and relationships.
Cisco's fiscal year-end is July, making it one of the best times of the year to negotiate non-standard concessions from your Cisco agreements, investments, and relationships. Read our top ways to save right now on your Cisco deployments.
When it comes to Mainframes, NET(net) sees incredible savings opportunities in 2023. Not since 2008 has there been as much downward pricing pressure on technology incumbents, and we believe meaningful savings targets can be achieved, but due to the market conditions, technology incumbent suppliers are seeking to increase prices and will be highly disruptive to any cost savings agenda, so it will require a commitment to do the hard work to realize meaningful reductions.
In case you missed our previous installments, take a look back at our previous posts:
